With direct write off, one writes off amounts from sales in the past are determined to...
With direct write off, one writes off amounts from sales in the past are determined to be uncollectable. An estimate writes off estimated amounts of current sales that are expected to be uncollectable. Does that help you determine the accounting principle used for estimates?
And a fixed asset question: when an asset is fully depreciated (think Kate's Cards after four years when the equipment with cost of $4,800 has accumulated depreciation of $4,800), should a company keep it on the books? Why or why not?
Homework Answers
1) Revenue recognition accounting principle used for estimates.
2) No, company should not keep fully depreciated asset in books. Because accumulated depreciation amount is already equal to cost of Rs. 4800 and when it deducts accumulated depreciation from cost then value of fixed assets becomes zero.
Further, it should use the accumulated depreciation amount and replace old asset with the new one.
Finally, we can say in short that company shall not keep this fully depreciated asset in books.
Add Answer to:
With direct write off, one writes off amounts from sales
in the past are determined to...
Under the direct write-off method, a. primary users are large companies with large amounts of receivables....
Under the direct write-off method, a. primary users are large companies with large amounts of receivables. ob. estimates are used. C. sometimes the allowance account is used. od. bad debt expense is recorded when specific customer accounts are determined to be uncollectible.
QS 7-4 Distinguishing between allowance method and direct write-off method LO P1, P2 Indicate whether each...
QS 7-4 Distinguishing between allowance method and direct write-off method LO P1, P2 Indicate whether each statement best describes the allowance method or the direct write-off method. List Method 1. Estimates bad debts expense related to the sales recorded in that period. 2. Matches the estimated loss from uncollectible accounts receivable against the sales they helped create. Usually does not best match sales and expenses because bad debts expense is not recorded until an account becomes uncollectible, which usually occurs...
When the direct write-off method is used: Multiple Choice 0 the estimated amount of bad debts...
When the direct write-off method is used: Multiple Choice 0 the estimated amount of bad debts is debited to Bad Debt Expense. 0 the estimated amount of bad debts is debited to Allowance for Doubtful Accounts the estimated amount of bad debts is debited to which account Accounts Receivable. 0 bad debts are not estimated 0 A company bought land and a building for $128,000. The building has a useful life of 20 years. Why should the company split the...
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Ture or fause question
UI TALSE. A company had net sales of $545,000 and cost of goods sold of S345,000. Its gross 1. margin equals $890,000 An accelerated depreciation method creates a larger depreciation charge as the asset comes closer to the end of its useful life. 3. JUnits of Production is an accelerated depreciation method. __4. The term "depletion" as applied to intangible assets follows the matching principle. Even if the end of an accounting period occurs between the...
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) Indicate whether the following are TRUE or FALSE. 1. A company had net sales of $545,000 and cost of goods sold of $345,000. Its gross margin equals $890,000. 2. An accelerated depreciation method creates a larger depreciation charge as the asset comes closer to the end of its useful life. 3. Units of Production is an accelerated depreciation method. _____ 4. The term “depletion” as applied to intangible assets follows the matching principle. _____5. Even if the end...
00000 Chapter 8 Homework Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods...
00000 Chapter 8 Homework Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods Commu Casebolt Company wrote off the follo accounts receivable as uncollectible for the first year of its operations ending December 31: Customer Amount Shawn Brooke $4,650 Eve Denton 5,180 Art Malloy 11,050 Cassie Yost 9,120 Total $30,000 a. Journalize the write-offs under the direct write-off method. If an amount box does not require an entry, leave it blank. Accounts Receivable x Accounts Receivable-Shawn Brooke...
Just want to double check my answers. and it its wrong, which one is the corrwcr...
Just want to double check my answers. and it its wrong, which
one is the corrwcr answer.
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QUESTIONS What are the two ty cachay is land different from other plant assets? yo major types of long-term assets that require a periodic write-off? Present examples for each type of asset the term that denotes the periodic write-off to expense. is what amounts constitute the acquisition cost of plant assets? ny bought land with a vacant building for $400,.000. Foss will use the building in its opera- oss allocate the purchase price between the land and building? Why...
Select the correct answer Q1 At end of the day, the cash register's record shows $155,...
Select the correct answer
Q1
At end of the day, the cash register's record shows $155, but
the count of cash in the cash register is $150. The correct entry
to record the cash sales for the day is:
Q2
A company receives a 10%, 60-day note for $2,400. The total
interest due upon the maturity date is:
Q3
A machine that originally had an estimated useful life of 8
years, but after 3 complete years, it was decided that...
Under the direct write-off method, a. primary users are large companies with large amounts of receivables. ob. estimates are used. C. sometimes the allowance account is used. od. bad debt expense is recorded when specific customer accounts are determined to be uncollectible.
QS 7-4 Distinguishing between allowance method and direct write-off method LO P1, P2 Indicate whether each statement best describes the allowance method or the direct write-off method. List Method 1. Estimates bad debts expense related to the sales recorded in that period. 2. Matches the estimated loss from uncollectible accounts receivable against the sales they helped create. Usually does not best match sales and expenses because bad debts expense is not recorded until an account becomes uncollectible, which usually occurs...
When the direct write-off method is used: Multiple Choice 0 the estimated amount of bad debts is debited to Bad Debt Expense. 0 the estimated amount of bad debts is debited to Allowance for Doubtful Accounts the estimated amount of bad debts is debited to which account Accounts Receivable. 0 bad debts are not estimated 0 A company bought land and a building for $128,000. The building has a useful life of 20 years. Why should the company split the...
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Ture or fause question
UI TALSE. A company had net sales of $545,000 and cost of goods sold of S345,000. Its gross 1. margin equals $890,000 An accelerated depreciation method creates a larger depreciation charge as the asset comes closer to the end of its useful life. 3. JUnits of Production is an accelerated depreciation method. __4. The term "depletion" as applied to intangible assets follows the matching principle. Even if the end of an accounting period occurs between the...
00000 Chapter 8 Homework Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods Commu Casebolt Company wrote off the follo accounts receivable as uncollectible for the first year of its operations ending December 31: Customer Amount Shawn Brooke $4,650 Eve Denton 5,180 Art Malloy 11,050 Cassie Yost 9,120 Total $30,000 a. Journalize the write-offs under the direct write-off method. If an amount box does not require an entry, leave it blank. Accounts Receivable x Accounts Receivable-Shawn Brooke...
Just want to double check my answers. and it its wrong, which
one is the corrwcr answer.
A) $147,368 B) 552.632 $200,000 D) $140,000 6) Which of the following items should be depreciated? Tangible property, plast, and equipment other than and B) Intangible property C) Land D) Natural resources 7) Which of the following accounting principles requires depreciation? A) The revenue recognition principle B. The matching principle C) The reliability principle D) The entity concept 8) Which of the following...
1,2,3,5,8,10,11
QUESTIONS What are the two ty cachay is land different from other plant assets? yo major types of long-term assets that require a periodic write-off? Present examples for each type of asset the term that denotes the periodic write-off to expense. is what amounts constitute the acquisition cost of plant assets? ny bought land with a vacant building for $400,.000. Foss will use the building in its opera- oss allocate the purchase price between the land and building? Why...
Select the correct answer
Q1
At end of the day, the cash register's record shows $155, but
the count of cash in the cash register is $150. The correct entry
to record the cash sales for the day is:
Q2
A company receives a 10%, 60-day note for $2,400. The total
interest due upon the maturity date is:
Q3
A machine that originally had an estimated useful life of 8
years, but after 3 complete years, it was decided that...
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